European car industry receives subsidies for electric cars, the battle over the end of fossil vehicles in 2035 continues.

Summary:

The article discusses the European Commission's efforts to accelerate the electrification of the vehicle fleet in Europe, led by President Ursula von der Leyen. She aims to support the production of small, affordable electric cars by the European industry, with a target price of under €20,000. A strategic dialogue has been initiated between the Commission and the automotive industry, highlighting the gap between aspirations and reality, as European automakers face challenges in transitioning to electric vehicles (EVs) and are heavily reliant on China for their supply chains.

Von der Leyen has previously delayed stricter emissions regulations to appease automakers and announced a €1.8 billion project to boost battery production. However, concerns remain about Europe's lag behind China in EV adoption. The article notes that the German automotive industry is pushing back against the EU's 2035 deadline for banning new combustion engine vehicles, seeking extensions and more flexible regulations, particularly for hybrid vehicles.

The article concludes that reversing established legislation would be politically risky for the Commission, and ongoing discussions are expected to address the challenges faced by the commercial vehicle sector, which currently has a low market share of electric vans at 8.5%.